24.4.2020 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 1 Corporate Presentation 24.4.2020 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Fact Sheet Ownership Founded Market Position Subsidiary of One of India’s largest Kansai Paint Co., 1920 Paint company: Leader Ltd., Japan in industrial paints Net Sales (₹) PBT (₹) Mar. Cap. (₹) (FY20 – standalone) (FY 20 – standalone) (31st March 2020) 4,943.2 Cr 683.6 Cr 20,880 Cr June 2020 Indian Paint Industry Size • Over Rs 55,000 Cr (USD 7 Billion approx.) Growth Rates • Double digit since 1991 Organized : Un-organized Market • 70:30 Per Capita consumption • ~3.75 kg (Global average @12-15 kg) June 2020 History of KNPL 2020 Unveiled the new corporate 1920 2000 2006 identity of Nerolac- Colours that Care Started as Gahagan Paints and Company Name changed to Kansai Varnish Co Ltd. with factory at implements SAP ERP Nerolac Paints Ltd. with a Lower Parel across all locations new logo 2000 Tata Group divested 2019 its holding in favour 2012 JV with Polygel Industries of Kansai Paint Japan Acquisition of Nepal Shalimar Pvt. Ltd. to form Nerofix Pvt. Co., Ltd, Japan 1933 Paints Pvt. Ltd. In Nepal Ltd 1986 Acquired by Lead Industries, 2015 2019 UK Kansai Paint Japan Co., Tie-up with Capital Acquired Perma 1933 Ltd acquired stake of Holdings Maharaja Pvt. Construction Aids Private Ltd Name changed to Goodlass the UK Partner, Cookson Ltd., Sri Lanka for Lanka Wall (India) Ltd. Operations 2018 1946 1983 Acquisition of RAK Name changed to Goodlass 2018 Technical collaboration with Paints, Bangladesh Wall Pvt Ltd. Kansai Paint Japan Co., Ltd Acquisition of Marpol 1957 Pvt. Ltd. Changed name to Goodlass 1976 2018 Nerolac Paints Ltd Tata group acquired a part of State-of-the-art R&D Lab in the foreign shareholding Vashi, Mumbai commissioned June 2020 Shareholding Pattern Shareholding Pattern as on March 31, 2020 9.07% 15.94% 74.99% KPJ Institutional Non Institutional June 2020 Our Heritage – Kansai Paint Co., Ltd., Japan Net Sales (Consolidated) ❖Gross Sales over 3.8 Billion USD 600 Billions of Yen 500 427 402 407 400 328 330 300 Presence in over 80 200 Countries via 152 Companies 100 Technical and innovation Leader in Automobile and Industrial Coatings 0 2015-16 2016-17 2017-18 2018-19 2019-20 Among Top 5 Global Automotive Paint Companies 8th Largest Paint Company Globally Japan’s Largest Paint Company June 2020 Technology tie-ups Japan Japan Cashew Tsusho Oshima Kogyo Auto Paint – Plastic Canada Heat Resistant Paints Protech Oxyplast Powder Coating June 2020 Our Foot-Print Six Plants Strategically Located near OEMs (Auto Clusters) Strong Competitive Edge 104 Depots pan India (Denoted State Wise) ❖ 27500+ Customers Network British Safety Award Depot Network ZERO liquid Discharge Large and well- established network OHSAS 18001 spread across key ISO 14001 markets June 2020 Vision, Mission Our Vision Our Mission “We design solutions that Protect, We leverage superior technology to Inspire and Touch Lives everyday” contribute to our Customers and Society, in a sustainable manner, with innovative Products and Services, through a competent workforce, built on a culture of Customer Focus, Integrity and Respect to our Stakeholders. June 2020 New Corporate Identity PURPOSE Create Environments for a healthy and beautiful future EXPRESSION Colors that care PROMISE Renew Life June 2020 June 2020 Overview of our Performance Sales In Rs Crores PBDIT In Rs Crores 5682 790 782 6000 5487 731 742 5047 800 4404 700 580 5000 4097 600 4000 500 3000 400 2000 300 200 1000 100 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 Return on Capital Employed(%) Return on net Worth(%) 30 26.9 26.8 25 20 18.5 18 25 16 20.8 13.6 14.1 20 18.2 15 15 10 10 5 5 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 June 2020 Overview of our Performance Earnings Per Share(₹) Dividend (%) 12 315 9.6 9.9 350 305 300 10 9.4 8.7 300 260 260 8 6.7 250 6 200 150 4 100 2 50 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 Shareholders fund in Rs Crores Market Capitalization in Rs Crores 3787 30000 27172 4000 3424 24642 3125 2805 25000 20368 20810 3000 2503 20000 15171 2000 15000 10000 1000 5000 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 June 2020 Overview of our Performance Count of Customers Operating Cash Flow in Rs Crores 35000 700 621 28000+ 30000+ 30000 600 26000+ 23000+ 25000 500 20000+ 390 345 20000 400 377 15000 300 10000 200 110 5000 100 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 June 2020 Strategy Decorative, Automotive, Performance Coating Strengthen the Core while Expanding Horizons Technology Service Innovative Products Specialized Teams Brand CORE New Segments: Wood Coatings, Adhesives, Construction Chemicals, Auto Refinish (ARF), Coil Coatings, Functional Powders, Pipe Coatings and Specialty Coatings EXPAND HORIZONS New Geographies: Nepal, Bangladesh and Sri Lanka EXPAND HORIZONS IT, Digital, People, Internal Efficiency program ORGANIZATION CAPABILITY Governance, Risk Management, Compliance, Sustainability LONG TERM SUSTAINABLE VALUE June 2020 Core Business General Industrial Coatings Automotive Powder Coatings Coatings High Decorative Performance Coatings Coatings June 2020 Decorative Super Premium Premium Popular Economy Impressions Impressions Beauty Little Impressions Impressions Beauty Gold Beauty Smooth UHD Ultra Fresh Eco Clean HD Master Interior Emulsion Range Super Premium Premium Popular Economy Excel Top Excel Mica Suraksha Excel Anti Peel Suraksha Plus Suraksha Guard Excel Total Marble Advanced Exterior Emulsion Range June 2020 Decorative Impressions Impressions Impressions Excel Alkali Redimix (Putty Exterior Primer Ideaz Glitter Metallic primer cum Primer) Designer Range Primer Synthetic Satin Enamel June 2020 Automotive Customer Segments Product Line Up Cathodic Electro Deposition (CED) and Medium Solid, Thermal Acrylic Cathodic Electro 3 Coat – 1 Bake System Sprayed Aluminium Deposition (ACED) (TSA) Polyester Primers High Mar Resistant Clear Super Durable Monocoat Metallics Coats Monocoats Polyurethane (PU) Heat Resistant Paints Auto Interior Coatings Coatings for Metal and Plastics Automotive : Leadership since decades (Primer+ Top Coat + Clear Coat, including plastic paints) June 2020 Performance Coating - Liquid Customer Segments Product Line Up Polyurethane (PU) Chlorinated Rubber Primer and Top Epoxy Coatings Coatings Coats Petroleum / Metal Industries Fertilizer Industries Cement Industry Alkyds – Primers Heat Resistant Petrochemical Zinc Rich Coatings and Top Coats Coating Polysiloxane, C5, Floor Coatings Pipe Coatings IPNet Construction Equipment Drum Barrel Helmet Coating Cycle Meeting painting requirements of all possible segments June 2020 Powder Coating Customer Segments Product Line Up Epoxy Polyester Powder Epoxy Powder Light Fixtures Electrical Equipments Fans Auto Ancillary Pure Polyester Heat Resistance Powder Polyurethane Super Durable Powders, Rebar Coatings, Pipe Bonded Metallic Coating Powders Powders Refigerators Washing Machine Air Conditioner Microwaves Powder Coatings: Undisputed Leadership and high market share through a variety of products June 2020 Expanding Horizons (New Markets/ Geographies) Construction Chemicals Wood Adhesives Coatings Floor Coatings Sri Lanka Coil Coatings Niche International Nepal Rebar Coatings Markets Markets Railway Coatings Bangladesh ARF June 2020 WOOD FINISH An extensive range of high quality products for all kinds of wooden surface, veneers and MDF June 2020 WOOD FINISH- NEROLAC ICRO A luxury range of ultra – premium wood finish range imported from Italy June 2020 Construction Chemicals- Nerolac Perma An extensive range of waterproofing and general repair products which are easy to use with a vision to increase life expectancy of the treated surface area in both retail as well as project business. June 2020 Adhesives- Nerofix An evolving range of woodworking adhesives developed after months of research and field trials to deliver superior results at optimum cost with a focus on “safe to use” for carpenters. June 2020 Auto Re-Finish An extensive range of high quality products to cater all segments in Auto Refinish. Committed to deliver optimum solution to body shops with productivity and profitability. After Market Repainting and Touch-up Passenger Vehicles Commercial Vehicles Two Wheelers Three Wheelers Bus Body Auto Parts & Furniture. June 2020 Niche Industrial Markets Railways Rebar Floor Coil Future Industrial Growth Drivers June 2020 International Subsidiaries Sri Lanka Nepal Bangladesh • Operations Started in • Operations Started in 2017 • Acquired in 2018-19 2012 • Tie-up with one of the • Diverse range of • Fastest growing largest conglomerates products in company Decorative and rd in Lanka Maharaja - • 3 biggest player in Protective coating Nepal SLon Amt NPR Cr Mar'20 Amt LKR Cr Mar’20 Amt BDT Cr Mar’20 Turnover 137.6 Turnover 32.3 Turnover 163.7 EBIDTA% 16.4 EBIDTA% -45 EBIDTA% 1.8 June 2020 Organizational Capabilities Manufacturing Prowess People R&D Prowess IT & Digital June 2020 Manufacturing Prowess State-of-the-art technologies and Annual Capacity in World Class Manufacturing modern digital solutions help to Year KL/MT Systems achieve end to end automation. Existing 2017-18 4,13,772 Digital Platform 2018-19 4,52,676 • MES (Manufacturing Execution System) • WMS (Warehouse Management Current